Canada is ‘schizophrenic’ on nuclear power, must choose side: Bruce Power CEO

TORONTO – Canada is “schizophrenic” when it comes to its nuclear industry and must decide soon whether it will support it politically or abandon a business that’s here to stay, Bruce Power CEO Duncan Hawthorne said Thursday.

The plain-speaking former engineer pulled no punches as he waded into the debate over Atomic Energy of Canada Ltd., which the Conservative government decided to put up for sale almost two years ago.

Hawthorne, whose company was reportedly in talks to buy the heavily subsidized Crown corporation, wouldn’t confirm whether Bruce Power has in fact walked away from the table.

But it’s clear that success in the nuclear business requires consistency — something Canada lacks, he said.

“We’ve been schizophrenic,” he said in a Toronto speech to the Empire Club of Canada.

“Do we want to kill it? Do we want to feed it? Do we want to sell it? Are we happy with someone else coming in, and we’ll become passive and just import the technology?”

“Boy, we’ve talked about every one of those options. Make up your mind, make a plan, stick to it.”

When even oil-rich Saudi Arabia is looking into nuclear power, Ottawa needs to realize the potential of being in an industry that’s growing around the globe, he said.

“Even if AECL were sold tomorrow, and we were the bidder — which I’m not confirming — the one thing I’ll tell you is that there is no exit for the federal government,” Hawthorne said.

“There is no exit for a federal government from a nuclear industry. Once you’re in the nuclear industry, you’re in it. And the only question is whether or not you want to be fully committed and visibly supporting it and actively promoting it, or whether you want to accept it as a liability and risk.”

Ontario — where the industry is largely based — has shown its support for nuclear through its long-term energy plan, he said.
The province has been involved in a war of words with Ottawa over AECL, loudly complaining that it can’t move ahead with a multibillion-dollar plan to buy two new nuclear units because Ottawa put the agency up for sale.

Premier Dalton McGuinty opened fire again Thursday, saying he fears for the jobs of Ontario’s nuclear workers.

“The feds like to talk about being an energy superpower,” he said in Ottawa.

“Well, there’s an Ontario-based industry that supports 70,000 jobs, that injects $6 billion into the national economy every year. I think that’s pretty important to us as well.”

Hawthorne, echoing McGuinty’s words, said the federal government hasn’t shown the same public support for its nuclear industry as other countries, such as France.

“I would argue that if Canada sees itself as being an energy superpower, then it has to be more than just digging for oil,” he said.

At the heart of the debate over new nukes is the question of who will be responsible for any cost overruns.
But Hawthorne argues that neither Ottawa nor Ontario needs to take on those risks.

There’s nothing stopping both levels of government from choosing an AECL design for the reactors, which would “stabilize” the agency, he said.

“You can then have a commercial discussion about who builds it,” he said.

“The risk is in the construction, not the design.”

AECL’s president and CEO, Hugh MacDiarmid, attended Hawthorne’s speech but refused to comment on the sale.

He also gave a terse “no comment” when asked whether he agreed with Hawthorne’s view about Ottawa’s lack of involvement with AECL.

“I believe that we’re going to find a very good outcome in whatever process is underway,” he said.

That process seems to have reached a standstill now that Bruce Power and SNC-Lavalin Group are apparently no longer interested in buying it.

A source confirmed to The Canadian Press a week ago that Bruce Power walked away from the table.

That same day, the union representing scientists and engineers suggested that SNC also pulled out.

The Society of Professional Engineers and Associates has said it fears the government will allow AECL to die a slow death and has urged its members to put pressure on the government to allow AECL to seek new business opportunities.
SNC has refused to comment, citing a confidentiality agreement.

A third offer for AECL was reportedly submitted by Toronto businessman Andrew Day.